The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical.
FIGURE 34- 4
-If all countries try to expand their exports and restrict their imports through the use of export subsidies and import tariffs,the net effect will probably be
A) a fall in the volume of trade and an increase in the standard of living in each country.
B) no change in the volume of trade but an increase in the overall unemployment rates.
C) no change in the volume of trade but less unemployment.
D) a fall in the volume of trade and a decline in the average living standards in each country.
E) an increase in the volume of trade but little change in unemployment levels.
Correct Answer:
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Q1: The diagram below shows the domestic demand
Q2: The diagram below shows the domestic demand
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